The investment, to be made over a number of years, will see the mill’s paper machine rebuilt and a recovery boiler installed, upgrading the plant from an annual capacity of 400,000 tonnes to 428,000.

Bought from OEM Valmet, the new recovery boiler will boost steam efficiency at the mill by 25%, and allow steam to be recycled back into the mill from the boiler. The boiler is expected to come online in early 2025.

The new boiler, DS Smith said, will support the rebuilding of PM4, the mill’s paper machine, allowing it to increase in both speed and capacity. Manufacturers Voith and Valmet have been jointly enlisted for the paper mill’s reconstruction, with completion slated for late 2023.

Niels Flierman, head of paper and recycling at DS Smith, said the company’s investment in efficient kit was part of its commitment to a circular economy.

He said: “Our papermaking operations across Europe and North America are focused on providing the paper needed to meet the growing demand for sustainable packaging.

“As one of our larger mills, Viana has a huge role to play in this and the €145M investment is testament to our commitment to remain at the forefront of the market, and to lead the way in the race to net zero in the paper industry.”

DS Smith has set targets to reduce its scope 1, 2, and 4 greenhouse gas emissions by 46% of its 2019 levels by 2030, aiming to reach net zero emissions by 2050.

The company’s Viana mill underwent a previous modernisation programme in 2017. It was acquired by DS Smith in 2018, and was previously known as Europac Kraft Viana.

The plant employs 260 people, and is one of two kraftliner mills DS Smith operates. The firm runs a further 12 recycled paper mills in Europe, and one in the US.